TMCnet News
J.D. Power and Associates Reveals Television Service 'Cord-Cutting' Has Only a Minor Impact on Residential Television SubscriptionsJul 05, 2011 (Close-Up Media via COMTEX) -- Amid debates regarding how U.S. consumers will view video content in the near future, 3 percent of pay-to-view customers reported having "cut the cord" and canceling their television service in favor of other viewing options, according to the J.D. Power and Associates 2011 U.S. Residential Pay-to-View Study. According to a release, the inaugural study provides insights concerning attitudes, viewing preferences, behavior patterns, awareness and experiences of pay-to-view customers among the home television and video service providers across the United States. While a minority of customers overall have canceled their cable television service, rates of cord-cutting vary significantly by generation. Six percent of Generation Y customers (ages 17-34) say they no longer subscribe to a residential television service, compared with only 2 percent of Baby Boomers (ages 47-65). One percent of customers ages 66 to 86 report cancelling cable service, while 4 percent of Generation X customers (ages 35-46) say the same. "The predictions of the demise of television subscription service as we know it are clearly premature," said Frank Perazzini, director of telecommunications at J.D. Power and Associates. "The popularity of services such as Netflix and Redbox is a clear indication that consumers are enjoying the availability of alternative viewing options. However, with 52 percent of television customers reporting that they still watch regularly scheduled programming as it is broadcast, the current model will remain viable for the next two to three years, at a minimum." The study measures customer satisfaction with the pay-to-view service experience across six factors: variety of videos provided; ease of use; cost of service; customer service experience; billing; and offerings and promotions. Across the industry, overall satisfaction with the pay-to-view video service providers averages 743 on a 1,000-point scale. Netflix and Redbox perform particularly well in satisfying pay-to-view customers. The study also finds that more than one-fourth (27 percent) of video service customers indicate that they watch videos on a handheld mobile device, such as a music player, mobile phone or tablet. Mobile phones are still the most commonly utilized handheld mobile device for watching videos (15 percent), although with the surge in TV applications being developed for tablets, the use of these devices (currently 12 percent) could increase notably. Music players also currently hold a 12 percent share. Video service satisfaction is above average when customers utilize these mobile devices and music players to access content. More information: JDPower.com ((Comments on this story may be sent to [email protected])) |